district councils’ network localising growth

District Councils’ Network

LocalisingGrowthThe district contribution to delivering City Deals

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www.districtcouncils.info


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Contents

04 ForewordGreg Clark MP, Financial Secretary to the Treasury

& Cities Minister

06 Introduction

09 Part 1: Districts at the heart of a new growth agendaCouncillor Tony Ball, Deputy Chair,

LGA Economy and Transport Board 10

Simon Parker Director,

New Local Government Network (NLGN) 13

15 Part 2: Delivering the First Wave City DealsTony Goodwin, Chief Executive,

Tamworth Borough Council 16

Councillor John Burrows, Leader,

Chesterfield Borough Council 20

Andy O’Brien, Chief Executive,

East Staffordshire Borough Council 24

27 Part 3: Developing the Second Wave City DealsSteve Atkinson, Chief Executive,

Hinckley & Bosworth Borough Council 28

Andrew Bacon, Chairman,

Leicester and Leicestershire Enterprise Partnership 31

Councillor Sybil Ralphs, Leader,

Staffordshire Moorlands District Council 33

Oxfordshire Chief Executives' Group 36

Councillor Brenda Arthur, Leader,

Norwich City Council 41

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Foreword

Greg Clark MP, Financial Secretary to the Treasury & Cities Minister

Local loyalties are important, of course, and, to the greatest possible extent, the

boundaries of local government should be consistent with the character of the

communities they encompass. But identity is something that works at a variety of

scales and there’s no one set of pre-defined areas that can sum it all up.

Local economies are a prime example. These are shaped by factors which are in

constant flux – shifting over time with changes in transport links, technology and

trade patterns. Bureaucrats sitting in distant centres of power can draw as many

lines on the map as they like, but the reality on the ground will be very different.

Whether as investors, entrepreneurs, customers or job seekers, people follow

opportunities not boundaries.

However, while it’s impossible to say where one local economy finishes and

another begins, we can look to cities as focal points of economic activity – whose

importance goes well beyond their official ‘city limits’.

It’s on this basis that the City Deals programme works – seeking not only to

rebalance the ‘vertical relationship’ between central government and local

communities, but also to strengthen the ‘horizontal relationship’ between different

local players – whether in local government, the business community or civil society.

In a top-down system where the centre holds all the power, horizontal relationships

don’t really matter. The orders come down from above and everyone else does

what they’re told. The same policies are implemented everywhere so there’s not

much need for cross-border co-operation.

But in the decentralised system that we’re making progress towards, local

co-operation makes a big difference. This is especially true of the City Deals

programme:

• Firstly, each City Deal is a genuine two-way negotiation. It therefore makes

sense for different local interests to present a united front.

• Secondly, the City Deals are also tailored to the individual needs of each

participating community – there’s no one-size-fits-all solution presented

from on high. By pooling local knowledge, cities can make the most of this

responsiveness to local priorities.

• Thirdly, the City Deals agreed so far should be seen as a starting point, not

an end point for the ongoing decentralisation of resources and responsibilities

that this Government is committed to. The more that cities work across

boundaries the greater the potential for what could be achieved in future.

John Donne said that “no man is an island,entire of itself”. The same applies to localauthorities, including district authorities.


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This publication is a timely reminder that district councils have a big part to play

in this programme. Indeed, district councils have already helped to shape the first

wave of City Deals -- as shown by Tony Goodwin’s account of Tamworth

Borough Council’s involvement in the Birmingham City Deal.

The second wave of City Deals, currently in negotiation, brings a much larger

number of district councils into the process. And future developments –

like the implementation of Lord Heseltine’s report – can only widen the scope

for involvement.

I believe that through these policy developments, a new and better settlement

between central and local government is taking shape. It is an evolutionary, not a

revolutionary, change – and one based on practical local experience, not some

grand scheme dreamed up in Whitehall.

I’m encouraged by the fact that district councils are engaging with this process

and thinking through the implications. This collection of essays is proof of this

thought and engagement and I congratulate the District Councils’ Network for

bringing these important contributions together.

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IntroductionRecent research undertaken by the New Local Government Network for the

District Councils’ Network (DCN) showed that ‘economy and growth’ remains

one of the top priorities for district councils in the short, medium and long term.1

Promoting economic growth has long been one of the central purposes and

priorities of local government, particularly for district councils. Districts have

consistently demonstrated their ability to work with neighbouring authorities,

developers, small and large private sector businesses to deliver on major

regeneration, employment and housing projects. This is despite the prevailing

economic environment and the historical barriers restricting districts, such as

the centralisation of key powers and funding streams.

The depth and length of our economic malaise over the past few years not

only pushes economic growth up the local priority ladder for districts; but

strengthens calls for a whole new approach to delivering sustainable economic

growth, particularly in the regions outside of London and the South-East.

Local government and its partners have continually argued for greater

freedom and powers from Whitehall to put them in the economic driving seat.

Since coming to power the Coalition Government has slowly but surely begun to

listen. The Localism Act, National Planning Policy Framework, and establishment

of Local Enterprise Partnerships, were the early signs of this new approach

beginning to develop. The Treasury’s recent acceptance of the majority of

Lord Heseltine’s growth recommendations and promise of ‘Local Growth Deals’

by 2015 builds on these reforms, with economic powers and resources being

devolved to localities and away from Whitehall.

Whilst this year’s Comprehensive Spending Review will outline the extent of

the centrally controlled resources devolved through a ‘single funding pot’, there is

undoubtedly a re-setting of the economic relationship between central and local

government underway; one that frees local government and their private sector

partners to work within their functional economic areas, breaking-down barriers

and developing their own unique growth opportunities.

Symbolic of this policy trend is Coalition’s City Deals initiative. Originally focused

on urban centres such as Greater Birmingham and Sheffield, the Second Wave

has witnessed an acceleration of the programme well beyond the Core Cities

of England, with another 20 areas negotiating deals to devolve powers and

funding across transport, housing, skills and major infrastructure projects.

With an overwhelming focus on the ‘City’ in City Deals, the role of districts in

this vitally important policy narrative has been less prominent. However, the

fact remains that where Deals between local government, LEPs and Whitehall

stretch over two-tier local authority areas, districts are at the heart of delivering

this new localised approach to economic development.

1 New Local Government Network. The Road Not Taken – New Ways of Working for District Councils’ (March)


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The contributions in the following sections prove that districts have been at the

forefront of developing, negotiating and delivering City Deal proposals. From

Tamworth and Chesterfield in the First Wave, to Norwich and Oxford in the

Second Wave; collaboration between the tiers and types of local government,

neighbouring districts, LEPs and the private sector is helping to secure a new

growth agenda across England.

Recent research by the County Councils’ Network demonstrated the vital

contribution of two-tier areas to the growth potential of UK PLC,2 and if the

recovery is to pick up steam it is these areas that will help drive prosperity.

Whilst Local Growth Deals in 2015 are welcomed, unleashing the true potential

of county areas requires the Government to go further and faster in its commit-

ment to put local areas, and district councils, in control of their economic destiny.

Substantial resources across skills, transport, housing and infrastructure should be

devolved over the coming months to local partnerships, and flexibilities must be

provided for local government to continue to deliver localised growth strategies.

The trail blazers featured in this document prove that districts are up to the

challenge. The DCN will work with Government and our members to ensure all

districts are enabled to benefit from this new way of developing local economies.

2 County Councils’ Network. Counties & Economic Growth (May 2013)

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Part 1: Districts at the heart

of a new growth agenda


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The role of districts in City Deals and economic development: What can districts do for us?

Councillor Tony Ball, Deputy Chair of the LGA’s Economy and Transport Board

& Leader of Basildon District Council, outlines the growing contribution of

district councils in promoting localised growth strategies. He outlines that the

national narrative on devolving power and resources from Whitehall to local

government plays to the existing strengths of district councils in delivering

economic growth and regeneration for local communities.

Growth continues to be the number one priority for central and local

government. District councils up and down the country have shown that they

are open for business and are committed to promoting growth in their areas.

This has been demonstrated clearly by:

• The range of approaches that districts have developed to help local

businesses to access finance, including providing direct loans and acting

as guarantors for banks.

• The record number of planning permissions that have been granted -

87% of applications were approved in 2011/12, a ten year high.

• The work that districts have been doing to attract inward investment and

facilitate trade, often using connections to councils abroad to market the

UK Plc offer.

• The brokering of links between local employers and skills providers to help

people get into jobs and businesses to access the workforce that they need.

• Intensified engagement with local businesses and the formation of a new

relationship and appreciation of the contribution of the private sector to

local growth.

It is encouraging that government policy has recognised the role that councils

have to play in economic development and have made devolution of powers

to councils, businesses and other local partners a key component of government

policy. This has happened most notably, through the eight City Deals that have

already been signed and the 20 that are currently being negotiated to devolve

powers and tools that were previously held nationally to localities in order to

enable them to unlock growth in their areas.

We need to build on these successes and follow the clear direction of travel set

by the Heseltine Review, which confirmed what the LGA and councils have long

been saying. Lord Heseltine called for a major rebalancing of responsibilities for

economic development between central and local government, observing that

“local leaders are best placed to understand the opportunities and obstacles to

growth in their communities.”


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With the economy in need of boosting, we cannot afford to be precious about

who is given the ability to drive this or have preconceived ideas about where

the next drivers of industry or knowledge will come from. Yes, cities and larger

conurbations often have larger economic bases and economies of scale behind

them. But the economic landscape is changing and becoming more sophisticated.

Gone are the Regional Development Agencies and their regional geographies,

which did not always suit the way that economies really worked. What we are

now seeing is the recognition of functional economic areas in government policy,

some of which operate on the basis of Local Enterprise Partnerships with others

more suited to a smaller geographic footprint.

This is where there is a crucial opportunity for district councils to claim the

recognition they deserve as engines of growth. They know the makeup and needs

of their local business sector, have intelligence on the local labour market, and

create the conditions to attract business investment and use international links

to facilitate trade. Effective LEPs are working with districts to gather this local

intelligence and identify the right policy levers to drive growth in the wider area.

In a LEP like mine, which spans three counties in the South East, it is quite often

our districts that bring the truly local lens to economic development.

Strategic priorities are set across the whole LEP area, but are implemented

through the relationships we broker on the ground. For example, trade

development is a key priority for the Southeast LEP. To make this vision a reality,

Basildon District Council is using links forged with Portuguese local government

as we explore opportunities in green sector technology to see how we can help

local businesses to access Portuguese, Brazilian and Angolan markets. We have

also during the past couple of years formed relationships with emerging economies

such as China and India, enabling our local companies to identify new opportunities

in these markets. This is an example of a district council punching well above its

head and taking charge of promoting its local economy. This new role has to be

performed in partnership with local partners such as local businesses and the

engagement with the private sector is crucial to identify barriers to achieving

local growth.

Which is not to say that there isn’t still work to be done to sort out economic

geographies and develop the collaborative arrangements that will support the

most effective action on local economic development. But it is all too easy to

get caught up in boundary discussions. Areas need to work out what is the best

geographical area that suits them, it may be the “functional economic geography”,

it may be the travel to work area, it may be the LEP – and in fact, sometimes

it is all three. English local government is accustomed to working with messy

geography, and indeed, to turning it into a strength. Economic development is

complex and does not lend itself to a cookie-cutter approach. District council

leaders are pragmatists. We’ll make things work, but we have to have a seat

at the table.

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Encouragingly, within the First Wave of City Deals, we have seen important

recognition of the role that districts can have. As part of the Leeds City Deal, the

city region is developing a model for prioritising investment projects based on

the value they add to the local economy. These priorities will in part be drawn

from projects identified by districts within the region. The Sheffield City Deal

gives the four district councils in the city region a governance role, inviting them

to play an active role in strategic decision making.

We have seen this spirit carried through in some of the Wave 2 City Deal bids.

For example, the Milton Keynes proposal covers 76.7% of the Milton Keynes

travel to work area, which goes beyond city boundaries. This means that district

intelligence and input will be key to making the right decisions. This was

recognised in the Milton Keynes expression of interest for their Wave 2 bid,

which highlights the importance of having districts involved, and indicates that

all authorities will have a representative on the board.

Looking ahead, the Government has committed to making Local Growth Deals

available from 2015, which means that the work to make those deals viable and

substantial has to start now. In theory, Local Growth Deals are meant to provide

all local areas the range of powers they need to drive growth in their areas,

underpinned by a single pot of growth-related funding. At a national level, the

LGA will be pushing hard for ambitious devolution and a single funding pot in

the order of the £58-70 billion that Lord Heseltine recommended, which

councils know all too well is never going to be an easy sell with central

government departments.

In the meantime, district councils have the opportunity to help build the case for

and shape the contents of Local Growth Deals. From our discussions with government

officials, we think this will mean that councils and their LEP partners will need to:

• Articulate clearly where the opportunities for growth in an area lie;

• Demonstrate good use of existing powers and flexibilities’;

• Expose the limitations in the current system; and

• Set out a compelling vision of what more could be achieved through a Deal.

District intelligence and input will be key to all of this. We are also going to have

to tackle head on the sometimes tricky issue of governance, which is key to giving

Government the confidence to devolve. Departments are seeking assurance that

councils and local partners are capable of putting together arrangements to

provide strategic oversight and democratic accountability for economic investment

and decision-making across a wider area. We need to build on the positive

examples, many contained in this publication, of where districts are collaborating

across boundaries for the greater good of the wider area, without losing the

identity of individual districts.

The LGA sees district councils as being vital to achieving local government’s

ambitions for devolution of growth-related powers and funding. Examples of the

excellent work that districts are doing to support growth – from direct lending to

businesses to prudential borrowing to build infrastructure to helping people get

into work – are the bedrock of our evidence base. As we step up our efforts to

make the promise of devolution become a reality, the leadership of district

councils will be more important than ever.


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Getting the governance right: collaboration offers district leaders a chance to lead on growth

Director of the NLGN, Simon Parker, argues that despite the prevailing

economic climate, City Deals offer a real opportunity for districts to lead on

the growth agenda. He suggests that the successful delivery of Deals stretching

across two-tier areas will rely crucially on an appreciation of organisational

scale, partnership working and successful local governance structures.

The new wave of City Deals has brought the role of districts to the fore.

While much of the UK’s potential for economic growth is tied up in big conurbations

like London and Manchester, there is a growing recognition that mid-size cities

like Ipswich and Cambridge have massive potential to ‘catch up’ with their larger

cousins. At the same time, cities like Birmingham are recognising that they need to

develop strong partnerships with outlying districts in their travel to work areas.

The challenge set by the City Deals is to go beyond focusing on your own patch

and to work collaboratively to drive growth across functional economic geographies.

To make the most of the deals, shires will need to form joint leaders boards,

pooled investment funds and perhaps even form full combined authorities.

But the evidence suggests that this kind of collaboration is the area where districts

need to up their game most urgently, and increasing the pace of change is particularly

important for those areas hoping to benefit from the emerging Heseltine reforms.

Recent NLGN research work, commissioned by DCN, showed that growth is

currently the second highest priority for districts, with housing expected to

dramatically rise up the agenda over the next five years. The overwhelming

majority of chief executives surveyed said that economic development was vital

to the future of their organisations. Districts have been helped by the fact that

new growth incentives – the community infrastructure levy, new homes bonus

and business rate retention – are primarily aimed at planning authorities; districts

rather than counties.

Some districts are using their new homes bonus to support new business support

schemes. Pendle Borough Council’s £340,000 investment programme, for instance,

provides grants of up to £10,000 for local businesses to improve their premises

or industrial processes. The HRA buy-out has helped Norwich City Council to

invest in new housing sites, build new council houses and finance green retrofitting.

This builds on longstanding examples of district entrepreneurship such as Woking’s

investments in green energy, which have grown to be worth as much as £25m.

The challenge for district councils is their scale. While some large districts might

be able to do a lot on their own, the vast majority have to work with their

neighbours to drive growth. The City Deal process recognises this – Ipswich is

paired with Suffolk County Council, Cambridgeshire with Cambridge City and

Brighton with Lewes. Counties have powers and resources that cities need, and

functional economic geographies almost always sprawl across several councils.

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NLGN’s research helps to explain why getting governance right is proving to be

the hardest part of the city deal process. The vast majority of districts think they

work well with the district neighbours, a finding evidenced by the rapid move

towards sharing senior officers in shires like Suffolk. They also think they work

well with the VCS and the private sector. But collaboration with counties and

neighbouring unitaries comes right at the bottom of the list.

This matters because shared governance across economic areas – whether in the

form of a joint leaders committee or a combined authority - can deliver real benefits.

Emerging evidence from Greater Manchester suggests that when councils come

together to pool capital funding in areas like transport into strategic, revolving

investment funds, they are able to borrow and invest much more money.

Greater Birmingham and Solihull LEP – which includes East Staffordshire,

Lichfield, Cannock Chase, Tamworth and Bromsgrove - is currently reviewing

the potential of a single capital pot for the whole area and are in discussion with

the Black Country LEP about the strategic function of local transport boards.

It is becoming increasingly apparent that the government wants to see some

kind of pooled governance structure across every LEP by 2015. Not only has this

become a virtual precondition for awarding City Deals, but the Heseltine agenda

makes it clear that areas which don’t put new governance in place might be less

competitive when it comes to handing out single pot funding, and may find that

their pot comes with more strings attached.

Areas that choose to flunk the collaborative challenge will therefore put themselves

at a significant disadvantage. That being the case, it makes sense for districts to learn

from their counterparts featured in this publication and start leading the agenda.

Looking ahead, it is possible to foresee the outlines of a new settlement emerging in

the shires where districts and counties work together to redistribute their services to

the most effective and efficient level, both to drive growth and secure savings. Strategic

economic development would be managed by a combined board at county or LEP

level, with significant sums of capital money pooled into a single investment fund.

Meanwhile, some county services would be run through joint boards at district levels

– for instance the preventative and community-focused aspects of social care. Front

and back office services would be shared, ideally across all local public services.

Such a settlement would allow local communities to benefit from the best of all

worlds: the scale to manage strategic investment decisions and raise more investment

capital at the shire level combined with a real understanding of every town and

village’s needs and the intimate democratic accountability that can be provided by

districts. It is always worth remembering that the ratio of members to residents in

a district might be 1:2,500, compared to something like 1:16,000 for a county.

Collaboration offers district leaders the chance to lead a redrawing of the local

government map on their own terms. There will be wins in terms of efficiency

and growth to pass on to local residents. Perhaps there will also be a convincing

response to champions of reorganisation like Lord Heseltine – radical joint working

has the potential to make his dream of a unitarised England completely obsolete.


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Part 2: Delivering the

First Wave City Deals

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Delivering better skills – Tamworth and the Greater Birmingham & Solihull LEP City Deal

Tony Goodwin, Chief Executive of Tamworth Borough Council, discusses

the thinking behind their involvement with the GBSLEP, the journey they

have been on, and how they are playing a key role in delivering the Greater

Birmingham and Solihull City Deal.

Tamworth Borough Council is located in the south east corner of Staffordshire

and enjoys neighbourly relations with Lichfield and North Warwickshire district

councils. The borough council is a member of the Greater Birmingham & Solihull

Local Enterprise Partnership (GBSLEP). However, as a consequence of its

geographical location and administrative boundary, it is also covered by the

Staffordshire & Stoke LEP.

As a founding member of the GBSLEP, the Council in communion with local

business partnerships have focused much of their economic development

resource on securing the most from what was a new, but very productive,

working relationship with all members of the LEP.

Tamworth’s first step on the City Deal journey could well be described as a ‘blind

leap of faith’. Having left behind us a world of command and control, we found

ourselves with the freedom to make a choice. Our detailed understanding of our

functioning economic geography, a strong steer from local business and meaningful

relationship building with key partners and politicians meant that we were well

placed to take advantage of the opportunities LEP’s presented almost from day one.

With the support of the Southern Staffordshire Partnership, made up of our local

college and Chamber of Commerce, Staffordshire University and Staffordshire

County Council; Tamworth Borough Council had been developing close working

relationships with the West Midlands conurbation and, in particular, Birmingham

City Council for a number of years. Initially, this took the form of the City Region

agenda back in 2005, which led to a place on the Birmingham City Region Board

for the Southern Staffordshire districts three years later. This relationship then led

to a decision to accept an invitation to work alongside Birmingham City Council

and Birmingham Chamber to jointly develop the bid to establish the Greater

Birmingham & Solihull LEP.

A direct consequence of this initial relationship was the set of principles adopted

by the shadow board, key amongst these being:

a) Each participating local authority would be an equal member

b) ‘Balanced benefit - balanced growth’


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What this ensured was that firstly, the structures that underpinned the working of

the LEP reflected the sub geography of the patch and that work progressed on

the basis of ensuring that all parts of the LEP could play their role in, and benefit

from, growth. Secondly that Tamworth Borough Council, along with East Staffs

Borough Council, Lichfield District Council, and Cannock Chase Borough Council

each had a seat on the board and were therefore an equal partner at Board level

to the unitary authorities covering Birmingham and Solihull. Consequently, we

were very well placed to participate in and influence the various opportunities

that were coming the LEPs way. The council participated in genuinely transparent

discussions about where to site the Enterprise Zone; which schemes to promote

for Growing Places Fund; and what should be included in the City Deal.

Naturally there were some high expectations with the City Deal. In the main,

these were met as the council, either directly or through the Southern Staffordshire

Partnership, were involved in some of the key discussions with the Cities Minister

and senior civil servants. As discussions progressed, the City Deal was shaped and

reshaped and ultimately an agreement was reached. Not everything we hoped for

was included, but the final product reflected a position that both the GBSLEP and

the Government were happy with. Inevitably, the Deal included activity that would

be primarily city based such as developing an Institute for Translational Medicine

and a targeted Green Deal providing energy efficiency work to 15,000

Birmingham homes. However, it also focused on several issues fundamental to

the Tamworth economy. These included a new approach to improving our skills

base and a new investment stream to be known as ‘GBS Capital’, which would

provide a resource across the whole LEP area to help unlock key investment sites.

In describing the Tamworth City Deal story, I want to focus upon the work related

to skills in more detail, as this was something the council were very much involved

in shaping. Furthermore, it reflects how inclusive and relevant to Tamworth the

GBSLEP is, and also because it provides a practical route through which we were

able to share and address some of the challenges of being in a LEP that did not

include our county council.

Following discussions at the main LEP Board it was agreed to establish an

Employment and Skills Board (ESB). This would be supported by four sub boards

each covering the four parts of the LEP geography, namely southern Staffordshire

(in which Tamworth sits), Birmingham, Solihull, and North Worcestershire (where

three districts are also part of the GBSLEP).

The aim of the ESB was to provide a clear business focus to how we address

our immediate skills needs and to identify how we might do things differently to

achieve the longer term and fundamental uplift in our skills base. The chair of this

board would be the LEP lead for skills (Alan Volkaerts - Director of Jaguar Land

Rover in Solihull) supported by four other core members in their capacity as

local ESB Chairs – all business people.

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Once the structure was agreed, Alan Volkaerts came along to Tamworth to

meet with our Members, to hear our concerns on skills, discuss his thoughts

for a business led approach to skills, and to help develop what would become

the Skills Accelerator part of the City Deal. This engagement and dialogue was

essential; demonstrating the necessity of strong links between public sector

enablers and private sector deliverers on the skills agenda.

Our local ESB has since been contributing to shape and deliver the Skills

Accelerator across the three meetings to date. In addition to private sector

input we benefit from colleagues from the local colleges, University, NAS, and the

county council attending. Through this group we have influenced how the Skills

Accelerator programme works including what our growth sectors are. We have

been able to access funding to support our local capacity building and to develop

some locally relevant pilot projects. We are also working with the consultants

who have been taken on to develop a coherent LEP wide skills strategy which

will also include priorities for each of the four sub ESB levels. £500,000 of

funding is currently coming from the City Skills Fund.

Alongside the recruitment of local industry champions for each growth sector to

identify 'Fixers', key activities in the work programme include the development of:

• A ‘Skills for Growth Compact’ that will achieve systematic and sustained

business engagement with schools – 25% of businesses to be signed up

by 2015;

• An IT solution to facilitate connections between education and businesses;

• Meaningful local activity with schools, colleges and businesses to increase

involvement in the National Skills Show at the NEC in November;

• A virtual Apprenticeship Hub;

• A £1m capital investment in specialist equipment and tools to meet the

skills needs of growth sectors;

• Delivery of an AGE grant campaign to ensure the enhanced take up of

over 3,500 AGE grants.

Progress so far includes the recruitment of the Development Officer for the Hub;

the identification of sector champions; and a draft LEP wide skills plan. Each local

ESB is now tasked with supporting delivery in its part of the LEP area ensuring

that this programme is genuinely delivered LEP wide. It is here that we believe

we are playing a key role as a district council, helping to shape the final delivery

of this important element of the City Deal.

Another critical skills and employment issue for Tamworth is to significantly

increase awareness and uptake of apprenticeships. The borough needs a better

articulation and joining up of the support that is available to employers to help

young people and adults into work through apprenticeships. To provide a

consistent and coherent message for employers, a virtual hub is co-ordinating

promotional activities and messaging about apprenticeships, supported by the

major NAS PR campaigns. The hub will operate as part of the wider Skills for

Growth compact so that there is integration between the supply and demand

elements of apprenticeships and take up of AGE across the GBS area.


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In delivering Tamworth’s contribution to the skills agenda, the Southern

Staffordshire ESB has played a vital role as an ‘honest broker’, managing the

complexities and potentially conflicting skills agendas of the two LEPs. It is

through this partnership group we have been able to support the development

of the skills part of the City Deal. A key task is to increase the level of business

involvement and we want to appoint champions from each of our key sectors.

Involving the county council has been a challenge. The simple message

throughout is that this is about securing more resource and more support into

Staffordshire to address the skills deficit. This will be achieved through the offices

of the Southern Staffordshire Partnership, the leads for skills in both LEPs, who

will meet on a bi annual basis to ensure that both LEPs work in partnership to

support Tamworth and Southern Staffordshire.

The task for us now is to ensure that this part of the City Deal is as relevant to

Tamworth as it is to any other part of the LEP - so far so good. For Tamworth,

the journey continues but we are prepared as ever ‘to boldly go where none

have travelled before’.

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Sheffield City Region City Deal – A Chesterfield perspective

Councillor John Burrows, Leader of Chesterfield Borough Council & portfolio

holder for Regeneration, discusses his council’s contribution to the Sheffield

Region City Deal. He describes the structural economic issues the Deal is

seeking to address locally, as well as the council’s contribution to the local skills

agenda and the importance of strong and accountable local leadership.

Chesterfield Borough Council has played an increasingly active role in the

Sheffield City Region (covering the local authority areas of Barnsley, Bassetlaw,

Bolsover, Chesterfield, Derbyshire Dales, Doncaster, North East Derbyshire,

Rotherham and Sheffield) in recent years. Joint working between the authorities,

reflecting functional economic links at the city region scale, commenced in 2007

with the creation of the Sheffield City Region (SCR) Forum. More recently, this

collaboration has taken the form of the SCR Local Enterprise Partnership (LEP)

and the SCR Leaders Group. Formal participation in the SCR LEP was a significant

decision for the council as it represented a break with traditional administrative

boundaries and existing working relationships. However, this decision was

informed both by the scale of the regeneration challenges which continue to

face the borough and recognition of the potential to drive forward economic

growth through proactive engagement with the LEP.

In common with the wider city region, Chesterfield’s economy has long term

structural issues linked to the decline of traditional industries and the need to

secure a more diversified business base. The impact of this decline is apparent

across the area with a legacy of brownfield sites and a high level of worklessness

in local communities. These issues have been compounded by the current

weakness of the national economy and also, looking forward, the area’s high

level of dependence on the public sector for employment. With almost 40%

of jobs in the public sector, the full impact of public sector funding cuts are still

to be felt locally.

The recent refresh of the ‘Sheffield City Region Economic Overview’ document,

a precursor to the completion of a more comprehensive economic development

strategy, highlights the challenges that need to be addressed at city region scale.

These include: developing those sectors that will maximise the potential for

growth; promoting a culture of enterprise and innovation; improving connectivity

within and to the City Region; and ensuring that the skills are in place to enable

the City Region’s priority sectors to grow in the future.


21

Despite its relatively short life, the City Region is developing a good track record

in securing resources and getting things done. This has already delivered significant

benefits for Chesterfield. For example, a number of Chesterfield businesses will be

supported to make new investment and create employment as a result of the

City Region securing £25 million from Round Three of the Regional Growth Fund.

The Chesterfield Waterside scheme, a £340 million regeneration project, has

secured £2.4 million from the LEP’s Growing Places Fund allocation to provide

enabling infrastructure that will unlock the first phase of residential development

on the site. Part of ‘Markham Vale’, a major employment site located in the borough,

has been included as one of three locations running along the M1 corridor that

make up the SCR’s Modern Manufacturing and Technology Enterprise Zone.

A SCR Inward Investment Team has been established and this team is responsible

for generating new investment leads and co-ordinating responses on behalf of

partner authorities.

Building on this success, the SCR City Deal was formally signed with Government in

September 2012. The SCR City Deal has been shaped by, and enables the delivery

of the city region’s economic priorities. It seeks to ensure that the growth of our key

sectors can be supported by access to a highly skilled workforce and through the

provision of a quality business infrastructure. Specifically the City Deal will:

• Create a ground-breaking business-led skills model which puts employers

and local partners in charge of getting the skills that the city region economy

needs to grow. SCR will lever over £44 million of local public and private

sector investment in return for almost £28 million of devolved funding

from Central Government over a three year period. The ‘Skills Made Easy

Programme’ aims to deliver 4,000 new apprenticeships and the up-skilling

of 2,000 existing employees by 2016.

• Establish a SCR Investment Fund which has an investment potential of up

to £700 million. This is a recyclable fund which will enable the City Region

to make strategic infrastructure investment against jobs and growth

outcomes utilising the new funding flexibilities available to local areas.

• Give SCR the power to create an efficient transport network which connects

people to jobs and helps to unlock key growth sites. This includes: a 10 year

allocation of devolved major scheme transport funding; local management

of the tram-train project between Sheffield and Rotherham; the introduction

of an TFL Oyster card-style ticketing system for the local bus network; and

devolution of the Northern Rail Franchise, to be jointly managed by

Greater Manchester, Leeds City Region and Sheffield City Region.

• Support the development of a national centre for procurement for the

future UK nuclear new build framework based on SCR’s Advanced

Manufacturing and Nuclear Research Centres.

22


City Deals offer devolution of powers and funding, but this is dependent on city

regions being able to demonstrate strong accountable leadership. In this regard,

it was becoming apparent that SCR was beginning to outgrow its existing

governance structures, which have so far been based on informal voluntary

partnerships. Accordingly, the SCR Leaders Group and SCR LEP agreed to

undertake a Governance Review under the provisions of the Local Democracy

Economic Development and Construction Act 2009. The headline conclusion of

the Review was that the establishment of a SCR Combined Authority would

improve the delivery of economic development, regeneration and transport

functions and was the option most likely to deliver sustained economic and

social benefits to the SCR. Each of the nine local authorities in SCR are currently

in the process of seeking approval via Full Council decisions to become a member

of the SCR Combined Authority, with a view to it going live in April 2014.

Whilst the City Deal has very much been driven by Sheffield City Council, as

the ‘Core City’ authority, each of the partners has been consulted and/or

involved at all stages in the development of the bid prior to its submission.

District councils are currently fully engaged in the further development of specific

elements of the bid now that the City Deal has moved on to its implementation

phase. For example, Chesterfield Borough Council is working on the City Deal

Skills Technical Group to support the delivery of the Skills Made Easy

Programme. This programme represents one of the most significant agreements

made with Government in any of the First Wave of City Deals. It seeks to tailor

skills provision to the specific needs of small and medium sized businesses

who often struggle to access the mainstream support that is available.

Account managers will provide businesses with a single point of contact

throughout the recruitment and training of an apprentice or employee, and

training providers will be incentivised to deliver training in response to employer

demand. Feedback from engineering businesses in the borough highlights a

particular need for this type of bespoke provision.

As a partner authority, Chesterfield Borough Council is supporting the

development of the SCR Investment Fund. This fund will combine various funding

streams into a single pot to support the delivery of strategic infrastructure which

has the potential to deliver transformational change in terms of GVA and jobs

for the City Region. A computer model is currently undergoing testing that will

enable the GVA outcomes of different types of investment schemes to be

compared, and an Assurance Framework has recently been endorsed by each

of the SCR authorities.

At a Full Council meeting on 28 February 2013, Chesterfield Borough Council

members gave their unanimous support to the creation of a Combined Authority

for Sheffield City Region. This decision is a clear statement of the value that the

council sees in partnership working at the City Region scale. The demise of the

Regional Development Agencies (RDAs) and their replacement with LEPs has

significantly changed the operating environment within which economic

development activities are carried out. LEPs operate at a smaller geographic scale

than the regional focus of RDAs, and are ideally based on functional economic

areas, as is the case with the SCR LEP. This means that most of the gains from

job-creating investment in transport and economic infrastructure will directly

benefit the resident workforce of the area.


23

The geographic scale of the SCR makes it strategic in nature, but not so large that

a district council such as Chesterfield cannot have a meaningful say on its strategic

direction and priorities. As a core city, Sheffield already has significant influence

within Government, and looking forward it is anticipated that the wider Sheffield

City Region will only strengthen as a key geography and key partnership. The

establishment of a SCR Combined Authority will put in place strong, stable and

accountable leadership, thus enabling the devolution of further powers and

funding from Government in the future.

24


The Greater Birmingham Project andshire districts: A single pot of gold at the end of the City Deal rainbow?

Andy O’Brien, Chief Executive of East Staffordshire Borough Council,

discusses how his authority is helping the Greater Birmingham & Solihull

Local Enterprise Partnership progress the economic devolution agenda

started by the LEP’s City Deal. Building on the City Deal, East Staffordshire

helped position the role of districts in moving the Single Pot debate

forward, overcoming some of Lord Heseltine’s predilections for economic

geography and unitarisation. He argues that they have contributed to

governance arrangements which ensure districts remain or can become

leaders of LEPs, instilling confidence and innovative ways of working crucial

to Single Pot success.

Following publication of Lord Heseltine’s already seminal paper ‘No Stone

Unturned’ during October last year, the Greater Birmingham & Solihull Local

Enterprise Partnership (GBSLEP), of which East Staffordshire Borough Council

(ESBC) was a founding member, asked the Prime Minister if Lord Heseltine

could help it in a project. This was to explore the recommendations of his

report as they might relate to local economies, the project becoming known

as the Greater Birmingham Project (GBP).

With the Prime Minister's agreement, its nine constituent local authorities

(including seven district councils) and board members started work on the

project over an eight week period, commencing in January this year.

Almost simultaneously, the Chancellor of the Exchequer welcomed No Stone

Unturned and committed the Government to the devolution of a greater

proportion of growth-related spending to local areas from April 2015.

Therefore, with the main prize already won barring the detail, the stakes for

ESBC, GBSLEP and its district councils were incredibly high as they responded

to No Stone Unturned by shaping some of the issues for discussion associated

with the ‘Single Pot’.

ESBC, which since the LEP’s creation has enjoyed an ‘equality of vote’ at the

GBSLEP board table, stepped up to volunteer itself for two project roles.

Its Leader stepping forward as a member of GBSLEP board and politician

led ‘Project Steering Group’; and its CEO as a member of the Core Executive

Group, which had responsibility for day-to-delivery of GBP.

Importantly, some of the basic analysis relevant to the work was already in place,

particularly in the LEP’s ‘Strategy for Growth’ and the City Deal and Enterprise

Zone agreements from 2012. This work represented the next steps for such

an approach.


25

So, through the GBP, how has East Staffordshire helped position the role of districts

in moving the Single Pot debate forward alongside its unitary (Birmingham and

Solihull) and district partners (Cannock Chase, Lichfield, Tamworth, Bromsgrove,

Redditch and Wyre Forest)? By helping overcome: some of Lord Heseltine’s

predilections for economic geography and unitarisation; proposing a form of

governance which ensures districts remain or can become leaders of LEPs;

instilling confidence and innovative ways of working crucial to Single Pot success.

LORD HESELTiNE’S PREDiLECTiONS fOR uNiTARiSATiON Of

ECONOMiC GEOGRAPHy

Well documented, it was clear from the outset that Lord Heseltine was interested

in challenging how such a diverse economic geography of that of GBSLEP had

come into being, what could be done to demonstrate efficacy and who exactly

was in charge.

The GBP team’s response was to consolidate its vision for the GBSLEP as being

shaped around an integrated set of spatial enterprise opportunities and needs,

with the Birmingham City Centre Enterprise Zone at the heart linked via the

M42 Economic Gateway to an Enterprise Belt that reaches out into Worcestershire

and Staffordshire. Spatial and economic growth plans are underpinned by a

quality of life offer, with a variety of high quality and affordable places to live, visit

and invest – many of which sit in the districts. This understanding, shared across

all of the local council members, demonstrates itself as what has now become

known as a “partnership of the willing”. This refreshing combination of local

councils is new to each other, as well as new to the private sector interests

sitting on the GBSLEP board. In the end, Lord Heseltine was comfortable with

this articulation of who was in charge (the councils, equally with each other, and

with private sector colleagues) and what the LEP was trying to achieve inside its

economic geography.

PROPOSiNG A fORM Of GOvERNANCE WHiCH ENSuRES DiSTRiCTS

REMAiN OR CAN BECOME JOiNT LEADERS Of LEPS

Notwithstanding we had convinced Lord Heseltine ‘who’ was in charge there was

need to explain ‘how’ we would be in charge of a Single Pot. The proposal was to

put forward a major enhancement of our governance arrangements as a response

to the devolution of a significant Single Pot by the Government.

From the outset GBSLEP has had a legal ‘personality’ through its establishment

as a company, run well as any other company or business would be run with

necessary discipline. However, the Project Group recognised the next stage of

GBSLEP’s journey involved transferring powers from Whitehall and therefore

required careful consideration.

Once the finer details of the Single Pot are announced GBSLEP will immediately

establish a Supervisory Board, comprised of the nine elected local authority

leaders. This will provide clear political accountability for the management of the

Single Pot. It will operate a cabinet style of accountability and will be a formal

governance structure. The Supervisory Board will empower the GBSLEP Board

through formal decision-making and a scheme of delegated authority and so will

further strengthen the partnership between business and civic leadership. The

GBSLEP Board will continue to be responsible for development and implementation

of the Local Growth Strategy.

26


iNSTiLLiNG CONfiDENCE AND iNNOvATivE WAyS Of WORkiNG

CRuCiAL TO SiNGLE POT SuCCESS

For districts to be taken seriously within such new and dynamic arrangements,

there is a need to punch above their weight, if only to instil confidence and

promote innovative ways of working which will be crucial to Single Pot success.

In the case of ESBC, inside the Greater Birmingham project team this took

shape around proposing promises to Government in exchange for a defined

Single Pot approach. Specifically:

Maximising Public Assets – we proposed that the LEP should be committed to

mapping and valuing publically-held surplus and/or derelict land assets by the end

of July 2013, asking all public bodies to do the same. This work will be co-ordinated

by the Homes and Communities Agency. This will enable the identification of

opportunities for inter-public sector land assembly and/or joint ventures to help

bring forward land for housing or employment use more effectively.

Proactive Planning – proposing that the GBSLEP use its Planning Charter

and Local Development Orders to support growth and create a positive and

pro-sustainable planning process. East Staffordshire has also been piloting a

‘clear and unbiased’ public statement which measures the delays in the planning

process by statutory consultees, developers and the planning authority.

The GBSLEP is going to attempt to roll out this ‘statement’ approach and will

also expand it to cover why planning permissions are not then implemented.

We also recommended to Government that it considers adopting this

into its national performance management of the planning process.

TAkiNG THE SiNGLE POT fORWARD

GBSLEP is a partnership that covers nine local authorities, seven of them districts,

coming together in a partnership of the willing to work on shared economic

geography. The LEP came into being with no assets, money, or powers, but

progress continues. If a Single Pot is to be taken forward we recognise that a

new form of governance is necessary which ensures districts remain or can

become leaders inside LEPs, including confidently taking forward innovative

ways of working crucial to Single Pot success.

Part 3: Developing the

Second Wave City Deals


27

28


A tale of two cities: Hinckley & Bosworth Borough Council

Steve Atkinson, Chief Executive of Hinckley & Bosworth Borough Council,

discusses his council’s experience of contributing to the development of two

Second Wave City Deal proposals. Acknowledging the challenges they face,

particularly in relation to local governance, Steve demonstrates that his

district is determined to use its good track record on overcoming

partnership challenges to grasp the potential economic rewards of the Deals

for the local community.

We thought we were unique; but not quite! There are other districts involved

in two City Deals, but Hinckley and Bosworth Borough Council straddles two

regions - East and West Midlands - and two Local Enterprise Partnerships –

Coventry/Warwickshire and Leicester/Leicestershire. This poses challenges we

haven't faced before; but the council, officers and members, have embraced and

addressed a number of challenges over the years - and emerged with credit and

success. We aren't about to change now; especially as the prize is the potential

regeneration of our local economy: for commercial, social and individual benefits.

The council is a partner to the Leicester and Leicestershire City Deal almost

as of right, being one of the seven districts in the county and having its Leader,

Cllr Stuart Bray, as one of the two district leader representatives on the LEP.

As a contrast, we are partners in the Coventry and Warwickshire City Deal by

invitation. And this also makes great sense. We share strategies, delivery, and

governance arrangements with our 'parent' county colleagues, by virtue of

geography, common interest and history (a previous Local Area Agreement

and a county Local Strategic Partnership).

We share a great deal in common with Coventry and Warwickshire. Historically,

many people in Hinckley used to work or had relatives and neighbours working

in and around Coventry during the heyday of the motor manufacturing industry.

Commuting is therefore common across the Hinckley, Coventry and Warwickshire

border. Local people now share the same problems and aspirations as their very

close neighbours across the A5 trunk road in Nuneaton, Bedworth and Atherstone;

and the centre of Rugby is only a little over twenty minutes' drive away.

Being at the geographic edge of two county boundaries paradoxically puts us at

the centre of a City Deal convergence. The issues we need to address overlap

to a large extent - a skills shortage and mismatch with what employers need,

now and into the future, in both LEP areas; the need for the infrastructure

appropriate to support the development of the economy; the need to acquire

and make available the land to facilitate this development; and the need to engage

and grow the private sector in specific industries.

It is the overall priority, the central economic challenge or ‘Flagship Policy’, as it

is now termed, and the means of securing that priority, which differs between

the two Deals. This is a real local challenge.


29

The Leicester and Leicestershire 'Deal' is being worked up from the basis of

'Accelerating Prosperity', with the three key components of:

• A Strategic infrastructure Plan - long-term, to unlock development

opportunities supporting economic growth.

• A Local infrastructure Plan - a local fund being created (over £100m)

by pooling a variety of funding sources to invest in priorities set in the

Strategic Infrastructure Plan.

• Co-ordination of public sector land assets - to facilitate land assembly.

This must involve the widest possible definition of 'public sector'.

The Coventry and Warwickshire ‘Deal’ is based on the aim of ‘Re-engineering

Engineering’ and has the following key components, the innovative means of

delivery of which is now in development:

• Developing skills for advanced manufacturing and engineering growth -

including growing local apprenticeships and delivering skilled engineers

to meet current and future needs.

• Access to innovation - the co-ordination of innovative activities to increase

Advanced Engineering Research and Development Activity, and the

development of a local dedicated Innovation Fund.

• Delivering infrastructure for Advanced Manufacturing and Engineering

Growth - via an Infrastructure Fund to deliver development sites,

facilitate housing schemes and improve the transport network.

In the development of the two Expressions of Interest at the end of last year

and in January this year, the Leader and Deputy Leader of Hinckley, two senior

manager colleagues and I have maintained a clear flow of information internally,

so that we have been interchangeable at meetings which, because of the

speed with which things developed, were generally called at short notice.

We supported these meetings and made, I think, a positive contribution there

and in the detailed preparations in between.

The Leader and I have emphasised that the council is 'in it to win it', because

the opportunities are too good to miss. A commitment based on the ability to

borrow against HRA 'headroom' (the council still owns and operates its own

housing stock) and 'pooling’ of retained business rates, provides a sound

platform for getting the best from both Deals. The council is well positioned

with its District partners in North Warwickshire and Nuneaton and Bedworth

to facilitate links between both City Deals, as part of the West Leicestershire

and North Warwickshire Cross-Border Delivery Partnership, which the council

brokered two years ago.

Clearly, the recommendations in 'No Stone Unturned' of a £49bn national

funding pot for economic growth will give LEPs (and therefore City Deals) the

financial power to begin the changes necessary to deliver growth; in this case

across a swathe of the East and West Midlands. Hinckley and Bosworth

Borough Council is at the centre of that growth potential and intends to leave

'no stone unturned' in getting the best for its businesses and citizens.

30


Through this process, we have discovered that one main challenge for Hinckley and

Bosworth Borough Council will be: How do we ensure that we are able to commit

the necessary resources (finance and people) between two major initiatives, and

make sure that we do this to maximum effect? Half-measures will not do!

We know already that one of the (if not the) major barriers to overcome will

be arrangements for governance. That, along with the allocation of resources and

responsibilities, will challenge our intellectual and organisational expertise to the

limit; but neither challenge is insuperable. Indeed, we are determined to ensure

that our businesses and communities get the best of both ‘Deals’ for the future.

The council has a history of dealing with partnership challenges and, over the

last six/seven years, has proved itself to be a valued, collaborative and dependable

partner in areas such as: shared services, in a regenerated office hub to

incorporate district, county council adult care and children’s services and Job

Centre Plus in one building; a joint Community Safety Partnership with Blaby

District Council; and a 'locality' (district) approach to Supporting Families

('Troubled Families'). It has also secured major investment and regeneration

opportunities, such as the MIRA Enterprise Zone and RGF funding for supporting

infrastructure; the Atkins Cultural Enterprise Centre and a state of the art Young

Persons Centre. We have also directly confronted the overall funding challenge

and feel confident that our sound financial management will stand us in good

stead in future years.

We have needed to be flexible and agile in moving resources to meet major

challenges and have been able to take speedy, but well informed decisions when

circumstances have demanded it. I see no reason why we can't continue this

flexible approach with partners in meeting the governance challenges of City Deals.

For this council it will be both ‘what we do… and the way that we do it’ which

will be the watchwords for the next five years and beyond.


31

LEPs and district councils; the Leicester and Leicestershire Enterprise Partnership & City Deal

Andrew Bacon, Director, British Gas and Chairman of the Leicester and

Leicestershire Enterprise Partnership (LLEP), discusses the important role

district councils are playing in the LLEP City Deal. He suggests that the

‘bottom up’ approach of the LLEP is helping ensure active and full district

participation, and the foundations of successful local governance.

As twenty more LEPs negotiate the final details of the Second Wave City Deals

with Government, the challenges of structure and governance remain at the

centre stage for debate.

In Leicestershire, we have made excellent progress in drawing together public

and private sector leaders to create a solid governance structure that will drive

opportunities for growth in our area. This will be our strength moving forward,

if we are to capitalise on the opportunities presented to us in the City Deal.

The Leicester and Leicestershire Enterprise Partnership (LLEP) area is a two tier

sub-region combining nine authorities, including seven district councils, a city and

county council. It is a partnership which ensures authorities at all levels, can have

influence and leadership at every stage.

The LLEP Board consists of a mix of public and business members with a cross

section of sectors represented. Strengths are drawn from the varied experience

of private sector, married with top level public representatives.

With a single joint focus of economic growth at the heart of the LLEP-wide

agenda, our approach to governance, by sharing responsibilities, has already

boosted relationships and been vital to a smoother, joined-up delivery of our

City Deal submission.

The Government’s localism agenda and intention to devolve more funding and

powers to local authorities is something that is welcomed by the LLEP and this

is endorsed within our City Deal bid. Even within our own sub-region, each authority

faces differing challenges and opportunities. We endeavour to work very closely

with each of the councils within our LEP remit, to reach a collaborative

arrangement where opportunities for growth are captured within each district.

This ‘bottom-up’ approach means our district councils will continue to play a

pivotal role in the development of local economic growth plans. Likewise, business

knowledge and engagement gathered through avenues such as area-based

workshops and breakfast meetings and led by district councils’ chief executives

and leaders, has already been crucial in informing LLEP policy and strategy.

32


The LLEP’s City Deal is focussed on infrastructure and other interventions to

foster employment opportunities to unlock the area’s unique growth potential.

The LLEP area boasts key employment sites such as the MIRA Technology Park

Enterprise Zone, the Roxhill development and Loughborough Science and

Enterprise Park. The alignment of all of our partners, particularly the involvement

of the district councils’ within the planning process, have been crucial in the

moving these strategic sites forward.

Our City Deal proposal outlines how the revised governance arrangements

and whole City Deal package (bespoke and core offer) will enable us to address

other fundamental issues required for sustainable economic growth:

• Housing growth (linked to the duty to co-operate, strategic site allocations);

• Strategic commissioning of funding to improve skills productivity in the

local market;

• Strategic transport to enable effective and efficient movement of the

local labour market.

Key decisions are crucial in each local area to earn the right for the levels of

devolution of decision making and funding that the Heseltine Review promises

us. It is impossible to know what a city deal is worth to an area, but my estimate

is that it could be worth an extra £50m per year to Leicester and Leicestershire

in monetary terms alone.

Government feedback has emphasised the need on a national scale for a

step-change in governance, for the arrangements to be able to make binding

decisions and for clarity on accountabilities. Having local control over investment

decisions with streamlining reporting arrangements and a single outcome

framework was an essential element of the LLEP’s bid.

We are hoping the Government continues to commit to its localism agenda as

we request for devolution of all national capital funding streams for infrastructure,

longer-term funding commitments (e.g. for local transport majors) devolution

of European Regional Development Funds 2014-2020, greater business rates

(perhaps in relation to growth on specific key sites) and transfer of Homes and

Community Agency assets.

We recognise this will be a test for many two-tier areas but the LLEP welcomes

the opportunity to show a united front across all authorities and the private

sector and evident co-ordination in matters of economic development.


33

Working across the tiers & types oflocal government to deliver growth

Councillor Sybil Ralphs MBE, Leader of Staffordshire Moorlands District

Council explores the partnership work, both economic and social, across

the emerging City Deal of Stoke and Staffordshire. unique in its

collaborative work across the tiers and types of local government in the

area, Councillor Ralphs details the benefits that it has already brought and

the potential the partnership has to offer in the future.

District councils are pre-eminent in understanding and dealing with the needs of

our places. But the scale of our budgets and staff capacity means that strong and

capable partnerships between the tiers and different types of local government

are needed to make things happen. Job creation and investment need all levels

of Government and LEPs, to work seamlessly and in a focused way.

Staffordshire Moorlands District Council covers a largely rural area, which

includes parts of the Peak District and the suburban fringes of Stoke-on-Trent.

It has a population of 97,000 people spread between the towns of Leek, Biddulph

and Cheadle and a series of villages. Unemployment is low, educational attainment

is high, but wages tend to be lower than other parts of Staffordshire. There are

pockets of deprivation particularly in the ex-coal mining town of Biddulph but in

general the rates of poverty are substantially below those of the nearby city.

Despite the largely rural backdrop there a number of large employers in the

area including JCB, Alton Towers, Adams Foods (Kerrygold), Lafarge and

The Co-operative Bank. These are of importance to the wider North

Staffordshire economy.

Stoke-on-Trent and Staffordshire LEP started work on the City Deal to attract

new businesses and create new jobs for local people. Its central premise is to

make Stoke-on-Trent and Staffordshire the key European centre for research

and manufacturing of advanced materials, including ceramics, metals and polymers,

thriving alongside other businesses and growth sectors in the region. It will build

on and accelerate existing work to support job creation and growth across the

city and county.

The proposal was drawn up following close working with district councils who

were closely involved in the process. In particular, as local planning authorities

the district councils are vital partners in ensuring that employment sites are

identified and delivered.

Districts were engaged from the start and representatives involved in developing

the expression of interest and subsequently the detail of the bid, including the

identification of the sites.

34


Following the success of the expression of interest in February the county and

districts have established the Staffordshire Economic Consortium, which I chair.

A shared economic strategy is being developed and considerable work is being

done to deliver a distinctive and effective bid. District councils, encouraged by

the county council, are playing a central role in developing the bid alongside

Stoke-on-Trent City Council and LEP. The Economic Consortium is meeting

every month to support the development of the City Deal bid.

Underpinning this strong partnership is a series of District Deals. These are

bilateral agreements between the county and individual districts. Each deal

has a mutual commitment to share the proceeds of growth through the City

Deal and other economic plans by pooling retained business rates. In turn the

county has committed to providing district council representation on the

Local Transport Board.

Each Deal also includes support for a series of local initiatives. In the case of

Staffordshire Moorlands this includes a commitment by the county council to

support, through staff, resources and policies:

• The delivery of town centre masterplans;

• The development and delivery of a tourism plan;

• Highways investment;

• Asset sharing;

• Support for employment and training initiatives.

The benefit of the District Deal, agreed in December 2012, is the identification

of shared priorities and a commitment to working together to deliver investment,

jobs and training. Our District Deal is helping to guide the local delivery of the

City Deal objectives and is already making a difference.

As a district council we have shaped our plans through extensive public consultation

underpinned by strong political commitment. The county has brought the ability to

commission highways investment to complement the programme and enabled links

to social care, education, which has added considerable value.

I chair a high-level group, which includes the county council leader and portfolio

holder for regeneration, to guide the District Deal. An executive board of senior

officers is responsible for managing and delivering the agreed programme.

The relationship has delivered significant benefits. Together we have secured

investment in Leek town centre. We have entered into a land deal, which has

attracted a national hotel chain, and we are in the process of concluding an

asset sharing deal, which will see the creation of a public sector hub in the town.

In parallel to the District Deal we have established a commissioning group –

the Moorlands Together Partnership - which includes the district and county

council, health commissioners, Police, Fire and the main social housing provider.

This group is focused on tackling a small number of partnership priorities such

as improved services for older people, tackling youth unemployment, and

addressing the problems of our most deprived neighbourhood.


35

The partnership has helped to add value to a number of programmes.

For example, the district council has set up a joint venture with Your Housing

Group to build 425 affordable and market houses in the area, a total investment

of over £45m, which includes an £8m grant from the HCA. The county has also

committed to this programme. One result is that the housing programme

includes the first extra-care scheme in the district providing 88 homes for older

people, an apprentice programme, local recruitment for care staff, and improved

on-site services for the residents. In addition the programme is also developing

a number of homes for people with learning difficulties.

Underpinning both the economic and commissioning partnerships in Staffordshire

Moorlands is the trust between our district council and the county, with a clear

separation of roles; the district leading on place and county council using its new

commissioning arrangements to improve delivery. Strong governance is central

to this trust, freeing partners to use a shared and strong evidence base to inform

service delivery around a number of joint priorities and objectives.

Our City Deal story so far has demonstrated that economic and service delivery

partnerships can thrive in the diverse local authority landscape of Stoke and

Staffordshire. In difficult economic times, this collaborative multi-agency partnership

work will continue to be at the heart of our local approach to meeting the

economic and social challenges we all face over the coming years.

36


Oxfordshire Chief Executives’ Group

Knowledge-led growth: delivering in partnership for Oxfordshire

Oxfordshire already offers a high quality of life for the many people who

live and work here. Oxford, with its world-renowned universities, has long

been synonymous with excellence - and Oxford is growing, one of the ten

fastest-growing cities in the uk. Local economic growth is a priority, and with

our assets in the knowledge economy, and position on key transport routes,

we know it can deliver much more - for local people, businesses, and in our

contribution to the national economy.

Our employment rate of 42.6% is appreciably higher than the national average of

38.6%, and 9.2% are already employed in the professional, scientific, and technical

sector, against 6.7% nationally. We can rightly claim to be the home of big science

in the UK, but we know we can achieve even more on job creation, and on raising

the quality of those jobs.

Our collective ambition is to do more to raise economic growth locally, and our

contribution to the UK recovery overall, and at the same time to bring about a

cycle of aspiration for our more deprived communities - of which there are

more in Oxfordshire than many national opinion-formers believe, achieving this

by providing more jobs, and better skills to ensure local people can get, and keep,

those jobs.

As well as presenting a great opportunity to deliver high quality growth,

Oxfordshire has a number of specific challenges to overcome. These include:

housing affordability - Oxford is the least affordable housing market relative to

wages in the UK; transport congestion - a great deal of investment is planned

in improved rail links and services, and reducing traffic congestion is high on

the agenda, particularly on strategic routes, in particular the A34 and M40.

We also need to ensure rapid transit from mainline rail stations to the science

areas in Oxford and Science Vale.

Oxfordshire County Council and Oxford City Council, and our Local Enterprise

Partnership, were therefore delighted when we were invited to bid for a

City Deal to unleash the growth potential of the Oxford economic area.

The Government's City Deal programme has provided a clear opportunity to

drive forward an ambitious economic vision for the area. Ministers have given

Oxfordshire the opportunity to strengthen partnerships across the public and

private sectors, and to innovate away barriers to growth.


37

Following this invitation, two things became clear very quickly.

The first was that while we were asked to identify the ‘challenge’ our City Deal

would look to overcome, we wanted our focus instead to be on the opportunity

presented by the distinctive features of our area. From our discussions it was

apparent that we shared a vision of Oxfordshire as a hub for big science, aided

by our strategic location in the heart of the south, and our world-class academic

and research institutions, with the potential to deliver much more given the

right freedom and support.

The second was that a successful deal could only be delivered with all partners

round the table - and a Bid Team rapidly came together from local government,

the universities, and the private sector - with regular attendance from Cabinet

Office and BIS colleagues, and bringing in outside expertise when relevant.

Our district councils were able to bring distinctive strengths and experience to

those early discussions, as well as their local economic assets

While Oxford is a recognised global brand, many people are unaware of the

extent of our economic area - despite its areas of outstanding natural beauty

the rest of Oxfordshire is far from a 'sleepy shire'. Indeed our growth potential

extends well beyond the city itself, with three quarters of all new jobs and

homes planned in the county outside the city boundary. Each part of the county

brings distinctive strengths to our bid.

• Oxford itself has a global brand reputation, thriving local economy, and

business orbit well beyond its boundaries. The two universities generate

research which drives the knowledge economy (Oxford University has

the highest research income of any university), and pioneering biomedical

research takes place at the University Hospitals, with future plans to

develop this including the BioEscalator at the Churchill Hospital, and

£170m of investment recently announced for cancer research.

• The south of the county contains our enterprise zone, Science Vale, and

is home to high-tech research facilities of global significance, such as the

National Science and Innovation Campus (including the Diamond

Synchrotron and Rutherford Appleton Laboratory), and Culham Centre

for Fusion Energy, with clusters of businesses around both.

• The north of the county is due to see significant transport improvement,

with faster rail access to the east, and London. It also has the greatest

potential for delivery of construction on housing and employment land,

including a major site at Graven Hill, a former MoD site in Bicester.

38


Banbury

Faringdon

Witney

Chipping Norton

Wantage

Wheatley

A40

To LondonA34 to M4

BICESTER

OXFORD

Didcot

SCIENCE VALE

Milton Park

Harwell

Culham

NOT TO SCALE

M40

M40

kNOWLEDGE SPiNE

The Oxfordshire Knowledge Spine runs across the heart of the county, with the

city of Oxford and universities at the centre, the major growth area of Bicester

in the north, and the home of Big Science, including the Diamond Synchrotron

and Rutherford Appleton Laboratory at Science Vale in the south.


39

To make the most of these assets requires joined-up thinking and joined-up

working, taking a strategic view of how to deliver the best outcomes in each

area, and improve transport options between them. We already have access to

London and Birmingham in under an hour by train, and via the M40, as well as

access to the A34 and M4 corridors, but more can be done to increase the

frequency, convenience, and reliability of transport to, and within, the county.

This matters because so much of the area's growth involves improving the

connectivity across the travel to work area, with 46% of Oxford's workforce

commuting into the city, and one in five Oxford residents travelling outside

Oxford for work.

Fortunately, Oxfordshire partners have a strong track record of close working,

including an active and well-regarded LEP, and a Spatial Planning and Infrastruc-

ture Partnership bringing together district and county council leaders on a regu-

lar basis.

Such strong partnership working is no mean feat in a complex two-tier area with

clear differences of political and organisational viewpoint between different areas,

and a legacy of unsuccessful reorganisation proposals under the last government.

We were already looking at the opportunities presented by the Heseltine

Report before the City Deal invitation was issued, both in terms of what can be

delivered and how we use that process to drive improvements in partnership

working, and very much see our proposal as part of delivering on that agenda.

We will not always agree, but we are committed to working to ensure that our

disagreements are managed constructively and do not prevent us from making

progress on the many issues which do command a consensus.

Working to a tight timescale the partners crafted our initial proposal -

“Transformational Growth Through a World Class Knowledge Economy” - which

commands the endorsement of every council in Oxfordshire, the LEP,

universities, research centres, University Hospitals Trust, and key partners from

business and government agencies. We are looking for certainty in investment,

and the ability to deliver infrastructure that will support future growth, and for

flexibility in the local delivery of education, training, and housing investment, to

make sure we have the right workforce to take full advantage of that growth.

Our proposal recognises the 'science arc' stretching from Science Vale in the

south to Bicester in the north, capturing the benefits of a Big Science research

and entrepreneurship eco-system, and the need for stronger transport links both

between these locations, and from these locations to other parts of the country,

including the A34 corridor, Heathrow, and London. Future investment in rail is set

to place Oxfordshire, and in particular stations at Oxford, Bicester, and Didcot, at

the centre of national rail infrastructure with improved access for passengers and

freight, with more destinations and faster journey times to all points of the compass.

40


In addition to direct involvement in building our network of science clusters,

the City Deal envisages stronger measures and devolution to deliver better and

more appropriate local housing for our growing population and for early career

researchers (with planning policy among the challenges to growth that our City

Deal will seek to overcome). It will also involve building the knowledge and skills

of our local population. We have the highest proportion in the country of

residents with higher qualifications, and are showing steady progress in school

attainment, but have greater ambitions, in particular around providing

apprenticeships and training tailored to the needs of employers, improving the

employment prospects of our residents.

Following the submission of this proposal, and positive feedback from Government,

the bid team have continued to meet on a weekly round-table basis, with

additional meetings between partners when necessary - and, crucially, regular and

active involvement from county and district leaders in taking this agenda forward.

We have recently worked through three 'thematic areas' with round tables

involving government and partners to look at how we take forward our ambition

in three key areas - innovation, skills, and infrastructure.

We plan to continue this open democratic model as the City Deal moves towards

delivery, with a Joint Statutory Committee taking the lead, made up of council

leaders and co-opted senior stakeholders, able to take binding decisions on matters

delegated to it, and operating with full public scrutiny. The county council will

act as the overall accountable body, with local projects devolved when this is the

most appropriate way to deliver them, including through districts. The committee

will be supported by an independent secretariat, hosted by the universities.

While we have to get the political processes right, ensuring a robust delivery

model which commands the confidence of local and national partners, it must be

one which is logical in the context of the practical projects the City Deal aims to

deliver. There is no shortage of these, particularly around transport improvements

to unlock development and enable business to flow more smoothly. We are

working closely with the LEP and colleagues within authorities to ensure that

this dovetails neatly with existing investment plans and priorities, and bids

through the Growing Places Fund.

Likewise, we are keen to ensure that the City Deal is not a 'castle in the air',

but moves forward on the basis of the best possible evidence and analysis,

including business surveys managed by the LEP, economic analysis of the city

and wider economic area, the Skills Needs Assessment, and the Strategic Housing

Market Assessment.

With robust understanding of our local economy and its potential, a realistic

but aspirational ambition for growth in Oxfordshire and a strong commitment

to, and track record of, partnership working, we are confident that our proposals

for knowledge-led growth will deliver for the local and national economy.


41

Greater Norwich City Deal: Working in partnership

in this final contribution, Councillor Brenda Arthur, Leader, Norwich City

Council, discusses the Greater Norwich City Deal Partnership. The

partnership covers three district council areas (Broadland, South Norfolk and

Norwich) and is being developed in a partnership between these councils,

Norfolk County Council and New Anglia LEP. Brenda focuses on the ‘civic

leadership’ opportunities created by City Deals, and the importance of strong

governance and LEP engagement.

When the idea of City Deals was first mooted, this was the opportunity we have

been waiting for. Norwich City Council only covers part of the urban area and

shares suburbs with Broadland District Council, South Norfolk District Council

and, of course, Norfolk County Council. So five years ago we set up the Greater

Norwich Development Partnership to develop and agree a joint core strategy.

As we all know, you can’t just magic a successful partnership. It took years to

develop the strategy, technically working our way through significant pieces of

joint work. But in a way that was the easy bit. The greatest challenge was building

strong positive relationships based on trust and mutual respect. Ones founded in

an understanding of what the key issues were facing each council because of

course it is completely different for each one. That is setting aside the fact that

Norwich is Labour and the other three councils are all Conservative. Add into

this mixture the highly regarded New Anglian LEP and you have another dynamic

to the partnership.

As leader of the council, my watchword is ‘collaboration’. I am constantly trying

to look for the benefits for the whole city and that is exactly what drives the

other leaders in the partnership. Together, all of the partners have developed trust

and ways of relating to each other that work.

ABOuT NORWiCH

Norwich is the largest economy in the East of England, so a prime candidate

for City Deals. The city is on a journey from a historically low skill manufacturing

economy to one where knowledge intensive industries dominate. The alignment

of top life science research institutions and a leading UK university, together with

55 hectares of development and a science park on the edge of the city, is just

one example of the area’s potential to accelerate this journey and secure growth

in high level jobs of international significance. A City Deal is seen as a key part

of the ‘tool-kit’ that should be available to Greater Norwich to exploit our

development ambitions and overcome obstacles to growth.

However, like many other areas, the economy of Greater Norwich is at a tipping

point. Ambitious plans for growth in both homes and jobs have stalled and

significant sectors of the community are facing long-term unemployment, financial

exclusion and lack of opportunity. A City Deal will provide an added focus for

the local authorities, New Anglia LEP, other public bodies, local businesses and the

Government to work together in a different way to find long-term solutions to

delivering sustained growth and spreading the benefits to the whole community.

42


OuR CiTy DEAL

A key driver of the City Deal for Greater Norwich is about capturing academic

and research excellence in life sciences and translating this into commercial

success .This will be done through new business opportunities alongside the

growth of the whole local economy. Our bespoke Deal is based around using

Norwich Research Park as a catalyst for economic growth in the city and beyond.

The aim is to use the City Deal promise of new freedoms, flexibilities and

hopefully additional funding to revitalise the Greater Norwich economy.

This will be achieved by reshaping and enhancing current nationally delivered

business support initiatives to a more coherent package with a clear focus on

the needs of local business enterprises. We will also seek to develop stronger links

between skills investment across the LEP area and the training needs

expressed by local employers. Lastly, as a collective body, we will work together

to accelerate investment in the infrastructure necessary to support growth.

The opportunity for district councils to promote and influence innovation and

enterprise, skills and infrastructure presents a new dimension to local civic

leadership. In meeting this challenge we recognise that we will need to establish

new ways of working. This will involve different relationships with a whole range of

public bodies and private organisations; the sharing of scarce resources (money,

property and staff); as well as adopting new approaches to managing risk. We will

also need to achieve stronger democratic involvement and locally determined

delivery through centrally controlled initiatives that are designed to encourage

economic growth. This will allow greater recognition of local priorities rather then

relying simply on pre-determined national solutions. The prize will be to establish

the ideal building block for Greater Norwich to play an active part in a post-

Heseltine era of devolved budgets to deliver Whitehall’s national growth targets.

THE GOvERNANCE QuESTiON

As part of a City Deal the government is asking local authorities and the LEP

to establish a robust governance structure that will be capable of taking hard

decisions and be the accountable body for significant sums of public money.

In a two-tier structure, where a City Deal covers part of a county council area

and part of a LEP area, this type of governance needs careful consideration.

In the case of Greater Norwich the four local authorities involved in the City

Deal have a long track record of working together. This experience has proven to

be invaluable in reassuring the Cabinet Office that different administrative bodies

with different political control can reach collective and consensual decision

making in a timely manner. This is not to say it is easy, but in Greater Norwich

we started from a strong base of joint working.

As local planning authorities all of the councils involved in the Greater Norwich

City Deal have worked together over a long period of time to prepare a joint

core strategy, secure and implement a growth point programme. Across the

country, it is clear that many areas have struggled to reach agreement on

delivering growth where city boundaries cross a number of authorities.

The way the government rolled out the new planning framework and the

implied relationship between housing growth and local determination has, in

some areas, made this sort of discussion even more politically problematic.

Therefore it is not surprising that in some locations the introduction of a City

Deal proposal for the area has raised, in a new context, the issue of cross

boundary integration of growth ambitions.


43

For Greater Norwich, having been through the ordeal (positive and sometimes

traumatic) of preparing such a growth strategy, the adoption of similar arrangements

for joint working on a City Deal has to-date been a positive experience.

It has reignited the shared ambition for delivering sustainable growth, which all

authorities held at the start of the growth programme. In fact, the tradition of

strong officer and member relationships across the area has provided a level

of trust between partners to hold the robust discussions necessary to take

forward a growth agenda that seeks to balance local priorities with area wide

needs alongside the recognition that these have to sit within a wider county

and LEP area context.

THE iMPORTANCE Of THE LEP

The emerging role and importance of the LEP has been highlighted in the City

Deal process. In our case the New Anglia LEP has the unique challenge of

managing two deals in one LEP area. This provides an added dimension to our

City Deal’s work and as a consequence there is a growing working relationship

between the two City Deal delivery teams in Ipswich and Norwich. We are

working together to adopt a common approach on initiatives that will have an

impact across the LEP area. This is highlighted in our approach to the skills and

labour market interventions. It has also brought to the fore that close working

between a LEP and the constituent local authorities can achieve significant

added value for the local economy.

iN CONCLuSiON

It is clear that the government is on a fast path to devolve more economic

development responsibility and funding to a local level. City Deals are part of

this process and the Government’s acceptance to create a single funding pot

(for LEPs), as suggested by the Heseltine review, provides a new dimension

beyond the City Deal proposal. In this changing landscape it is clear that district

councils can, should they wish to do so, play an important and influential role

by helping to ensure local priorities, opportunities and barriers to growth are

reflected in future investment plans. Working with LEPs and county councils,

district councils can provide democratic accountability and local governance in

areas that currently they have little or no opportunity to do so. To do this will

require a new approach to partnership working at a local level. The experience

in Greater Norwich is that having agreed development and growth ambitions is

fundamental. However, of more significance is investing time and effort in developing

relationships based on trust and a common understanding of the needs and

requirements of all partners around the table.

District Councils’ Network

Local Government House,

Smith Square

London SW1P 3HZ

Telephone: 0207 6643048

Email: [email protected]

www.districtcouncils.infofollow us: @districtcouncil

district councils’ network localising growth

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